Revolution Beauty swings to profit in second half of 2026 despite drop in sales

Revolution Beauty returned to adjusted EBITDA profitability in the second half of FY26 as its turnaround programme is taking effect, despite a 28.4% decline in annual revenue.

The UK mass beauty group reported revenue of £102.1 million across the 12 months to 28 February 2026, down 28.4% from £142.6 million in FY25. Gross profit fell 31% to £37.7 million, while the company posted a full-year adjusted EBITDA loss of £8.2 million.

Performance shifted during the second half, when adjusted EBITDA reached £4.3 million, equivalent to 7.8% of sales. This followed a £12.5 million adjusted EBITDA loss in the first six months of the financial year.

Group CEO Tom Allsworth commented on the results saying that the second half of FY26 had been a "pivotal period for the business" and the he was "pleased to report a return to profitability." 

Turnaround actions improve second-half trading

The improvement followed the return of Revolution Beauty co-founders Allsworth and Adam Minto in August 2025. Allsworth became Group CEO, while Minto rejoined the business as a consultant after launching Gen Z-focused make-up brand Trouble Maker.

Their appointments followed the end of Revolution Beauty’s formal sale process and the announcement of job cuts. The company has since reduced costs, rationalised its product portfolio, cut SKU numbers and tightened inventory management, while rebuilding its innovation and marketing strategy.

Revolution Beauty said stronger product execution and improved relationships with commercial partners also supported the second-half result. Direct-to-consumer sales increased 26% year on year, driven by the brand’s performance on TikTok Shop.

“We have delivered against our initial priorities and taken decisive steps to restore operational stability, simplify the cost base, improve execution and rebuild confidence with our partners and stakeholders,” Allsworth said.

FCA closure and Debenhams deal support reset

The results follow several developments addressing Revolution Beauty’s governance and commercial difficulties. In June, the Financial Conduct Authority closed its three-year investigation into the company without taking action. Its separate investigations into Minto and Allsworth had been discontinued in November 2024.

Revolution Beauty has also agreed a licensing partnership with Debenhams Group, which owns more than a quarter of the beauty company’s shares. The deal will see Revolution develop, manufacture and distribute fragrance and gifting products across Debenhams-owned brands, with the first collections expected before Christmas.

For FY27, Revolution Beauty said it is targeting full-year revenue growth and a return to profitable cash generation.